Corporate Performance     

Published: October 31, 2026
Updated: October 31, 2026

Paramount Communications

New plant may rerate stock positively

950 CLIENTS

Paramount operates two state-of-the-art manufacturing facilities in Dharuhera, Haryana and Khushkhera, Rajasthan. With a strong domestic presence and an expanding international footprint, it serves over 950 institutional clients and has established itself as a trusted partner across critical infrastructure and industrial applications.

During H1FY27, revenue from operations stood at Rs 1,089.8 crore against Rs 878.5 crore in the previous period, registering 24.1% growth. EBITDA and PAT margins showed a modest rise at 7.5% (PY 6.4%) and 4% (PY 3.5%) respectively, translating into a six-month EPS of Rs 1.38 vis-à-vis Rs 1.06; i.e., 30.2% up. Export revenue contributed Rs 158.1 crore in Q2 (28.2%), whereas domestic sales of Rs 402.30 crore remained at 71.8% of total sales. Amongst the revenue mix, power cables is the largest contributor at nearly 60%.

For FY26 (12 months), on operational revenue of Rs 1,964 crore, it achieved PAT of Rs 60.24 crore, converting into EPS of Rs 1.97. Its long-term borrowing is negligible, whereas short-term borrowing went up steeply from Rs 22 crore in FY25 to Rs 114 crore.

NEW PLANT

The order book of Rs 731 crore as on Sept 30, 2026 provides a reasonably good comfort zone to near-term revenue visibility. The company’s third manufacturing facility, spread across 31 acres at Narmadapuram, Madhya Pradesh, is coming up for the manufacture of EHV cables up to 220 kV, and its partial commissioning is expected in Q1FY28. The management expects this new plant to contribute Rs 500 crore in FY28 and Rs 1,200 crore in FY29 to operational revenue.

Commenting on the results, Sanjay Aggarwal, Chairman & CEO, said, “Paramount’s performance reflects the resilience of our business model, the strength of our customer relationships, and our ability to respond decisively to changing market conditions. We remain focused on sustainable growth and financial discipline.”

ROSY OUTLOOK

Outlining the demand scenario, he said, “The structural demand outlook for the wires & cables industry remains encouraging, driven by investments in power transmission and distribution, renewable energy integration and critical infrastructure. As power generation capacity expands, strengthening the infrastructure required to transmit and distribute electricity efficiently will be equally important, creating meaningful long-term opportunities for established players with proven capabilities.”

He added, “Our priorities remain clear: strengthening our core business, restoring operating profitability, expanding our international presence prudently and enhancing our product mix. Investments in specialised manufacturing capabilities will enable us to address more technically demanding applications and participate in higher-value segments. We remain committed to disciplined capital allocation, prudent risk management and translating the industry’s long-term growth potential into sustainable performance and enduring stakeholder value.”

STOCK WATCH

Currently, the stock is available at around Rs 65 with a yearly high-low of Rs 76-28, and market capitalisation of Rs 2,145 crore. The promoter group holds 45.87% and the book value per share is Rs 26.60. It might appear that the company is not getting a fair valuation compared to its peers in the listed space. However, it is mainly because of poor EBITDA and PAT margins and premature higher equity capital of Rs 65.45 crore. Therefore, the stock is certainly worth putting on one’s watchlist. As such, the downward risk also looks limited. The commencement of its third plant could possibly impact rerating of the stock positively.

Financial Performance (Rs. cr)